We all know SMEs constitute one of the pillars of the Indian economy. However, it is also a fact that financial distress rate amongst the SMEs is alarming and this is despite the Government doing its best to help SMEs in every possible manner. Such SMEs can now hope to come out of such difficult phase courtesy IBC 2016.. Being an ex-banker, I am aware about the ground level realities and will be able to pin point the reasons for distress as also the solutions needed. However—at the same time—I must caution against blind reliance on the material provided through this website because each SME will have a unique set of problems and an in depth—and separate– study is needed to diagnose the problem. Lastly this is an educational website and no income of any sort is being contemplated.

The Kolkata bench of National Company Law Tribunal (NCLT) on Tuesday reserved its order in the ongoing corporate insolvency resolution process of Binani Cement.

The Division Bench completed hearing all petitions excepting the one filed by the Resolution Professional (RP) alleging fraudulent transactions involving the promoters of Binani Cement.

The 270-days moratorium period for Binani Cement ended on April 21 and the Division Bench had on April 20, passed an interim order asking the Resolution Professional (RP) of Binani Cement to continue taking care of the management of the company “until further order’’.

As per the Insolvency and Bankruptcy Code (IBC), a resolution plan has to be approved by the NCLT within the stipulated moratorium period otherwise the company could go in for liquidation. However, the tribunal has discretionary powers to extend the timeframe or not consider the time taken for litigation within the stipulated period.